In March 2007 Talgo sold its Finnish rolling stock manufacturing subsidiary Talgo Oy to its local management and other Finnish investors. The company, which Talgo had owned for only seven years, reverted to its previous name of Transtech Oy. The company spends 10 to 12 percent of revenues on research and development,[2] but the main revenue source is the Spanish railway operator Renfe.[3]

Talgo trains are best known for their unconventional articulated railway passenger car that uses a type similar to the Jacobs bogie that Talgo patented in 1941, similar to the Robert Stephenson and Company trains. The wheels are mounted in pairs but not joined by an axle and the bogies are shared between coaches rather than underneath individual coaches. This allows a railway car to take a turn at higher speed with less swaying. As the coaches are not mounted directly onto wheel bogies, the coaches are more easily insulated from track noise. Talgo trains fitted with variable gauge axles can changerail gauge - for instance at the 1,668 mmIberian gauge/1,435 mmstandard gauge at the Spanish-French border interchange.

Since the introduction of the Talgo Pendular in 1980, the train tilts naturally inwards on curves, allowing it to run faster on curves without causing discomfort to passengers. The carriage tilting system pivots around the top of the suspension columns, which has the effect of partially cancelling out the effects of the lateral acceleration when cornering.

The Talgo I was built in 1942 in Spain. The coaches were built at the "Hijos de Juan Garay" workshop in Oñati and the locomotive was built at the workshops of the "Compañia de Norte" in Valladolid.[7] It was built as a prototype, and it was used to set several railroad speed records.[2] The first test run occurred between Madrid and Guadalajara, Castile-La Mancha in October 1942.[8]

Talgo III coaches and locomotives entered service in 1964, introducing longer cars and easy directional reversibility of the cars. The Talgo III/RD was equipped with variable gauge axles, and this permitted the introduction, on 1 June 1969, of the first through train between Madrid and Paris (the new service being designated Puerta del Sol), as well as between Barcelona and Geneva (the Catalan Talgo), despite the difference in rail gauge.[2][10] The same equipment was used for the Barcelona Talgo, which began operation on 26 May 1974 as the first-ever through train service between Barcelona and Paris.[11]

The Talgo Pendular (Talgo IV and Talgo V, also VI & Talgo 200 or 6th generation), introduced in 1980, created the "natural tilting" train, using a passive system that tilts the carriages with no need for electronic sensors or hydraulic equipment.[3] The wheels are mounted on monoaxles between the carriages, and sitting on top of the monoaxles are suspension columns. The carriages are attached to the top of the suspension columns and swing outwards as the train goes through a curve.

The Talgo VII introduced beginning in 2000 is used as a locomotive-pulled train set as well as intermediate cars for the multiple unitsTalgo 250, Talgo 350 and Talgo XXI. The carriages are similar to the Talgo Pendular type but have an air-controlled hydraulic brake system and power supply from head end power instead of diesel engine-generators in the end cars. Talgo VII trains have cars with two pairs of wheels in the middle rather than at one end.[15]

The Series 8 passenger cars are similar to the Series VII cars, but are designed for the North American market. Talgo made an agreement in 2009 to build a manufacturing facility in Wisconsin which would initially supply two 14-car trainsets for the Amtrak Hiawatha Service. The company expressed hope the plant would later be used to build trains for other U.S. rail projects.[16][17]

Early in 2010, the Oregon Department of Transportation announced that it had negotiated the purchase of two 13-car trainsets for use in the Pacific Northwest rail corridor between Eugene and Vancouver, British Columbia.[18] These trainsets were also manufactured in Wisconsin, and were delivered in 2013. The sets are currently operating in the "Cascades" corridor in the Pacific Northwest. They have been integrated with the five existing sets in regular service.[19] The Series 8 trains offer passengers many modern amenities including high speed Wi-Fi, reclining seats and a full service bistro and lounge car. in 2014, the state of Michigan expressed interest in operating the unused Talgo 8 cars for their Amtrak Wolverine service.[20]

Series designed for Russia and Kazakhstan, with wide bodyshell and wheelsets will be 3 versions, which consist either 1520mm fixed gauge, 1520-1435mm variable gauge and 1520-1676mm variable gauge. Also, they will be used in the Berlin-Moscow line (June 2016). In May 2016, this series trainset will be used for trial run in India.

The final successful test run of the Talgo 9 series coaches was completed in India on September 10, 2016.[21]

The Talgo 250 is a dual voltage electric train (AC/DC) equipped with variable gauge axles. This allows the units to be used on high-speed lines and on conventional broad gauge lines. A Talgo 250 train consists of two power cars and 11 Talgo VII intermediate coaches. This class was developed for RENFE (classed as S-130).[22] One trainset was involved in the Santiago de Compostela accident on 24 July 2013.

The Uzbekistan Railways ordered two Talgo 250 sets of a Russian gauge version in 2009. The first set arrived at Tashkent in July 2011.[23]

The Talgo 250 Hybrid is a dual-voltage dual-power train equipped with variable gauge axles. The train is therefore also able to operate on non-electrified lines. A Talgo 250 Hybrid train consists of two power cars, two technical end coaches and nine Talgo VII intermediate coaches. The trains were developed for RENFE and classed initially as S-130H, later as S-730). They are rebuilt from existing Talgo 250 trains.[24]

The Talgo 350 entered service as the RENFE AVE Class 102 marking the company's entry into the high-speed train manufacturing market. Tests with the prototype commenced in 1994,[7] and Talgo 350 trains have been operating at a top commercial speed of 330 km/h on the Madrid-Barcelona and Madrid-Valladolid lines since 22 December 2007. This series of trains is designed to reach a speed of 350 km/h (220 mph), although present lines and commercial services limit the speed to 330 km/h (205 mph).[25][26] The train consists of two power cars and Talgo VII intermediate cars with improved brakes and additional primary suspension.[15]

Talgo XXI is a project for a high speed diesel-powered train, that operates in push-pull with one or two power cars and Talgo VII intermediate cars. The North American version has four-axle power cars in compliance with United States FRA regulations. Only one train in compliance with European UIC standards has been built to date.[27] Talgo reported that the Talgo XXI attained 256 km/h on the Olmedo-Medina del Campo high speed experimental line on 9 July 2002,[28] which led to a claim for the world speed record for a diesel train. However, this claim was never proven. After the test runs the train was sold to the Spanish infrastructure authority ADIF as a measuring train for high speed lines.

Talgo is developing a train starting with the concept stage in 2009, known as "AVRIL" (Alta Velocidad Rueda Independiente Ligero — Light High-Speed Independent Wheel), intended for speeds of 380 kilometres per hour (240 mph).[29] The system will use underfloor traction in the front and rear vehicles, with the intermediate carriages having the Talgo Pendular system (which cannot use motored axles on the axles corresponding to the system). It began dynamic testing on the Spanish high-speed network in 2014.[30]